Q3 2025: Prices Rise, Foreign Demand Strong

Spain’s housing market continued to expand in the third quarter of 2025, with both prices and sales volumes reaching new highs.

New figures from Spain’s land registry also reveal the average price of a home rose to €2,303 per square metre, up 2.3% on the quarter and 15.2% higher than a year ago. Prices for used homes grew slightly faster than new builds. Madrid and the Balearic Islands remain the most expensive regions, both above €4,000 per square metre, while Extremadura and Castilla-La Mancha stay at the lower end of the scale.

There were 174,384 housing sales registered between July and September, a quarterly increase of 1.9% and 4.7% higher than the same period in 2024. Over the last twelve months, 699,638 homes changed hands, the highest annual figure since early 2008. Used homes represented almost 80% of all transactions.

Foreign buyers continued to play a key role, accounting for 13.6% of all purchases in the quarter, or around 23,700 homes. The share is slightly lower than the previous quarter but remains well above pre-pandemic levels. British buyers lead with 7.9% of foreign transactions, followed by German, Dutch, Romanian, Moroccan, French, Italian, and Polish nationals.

The highest concentrations of foreign purchases are in coastal and island areas. The Balearic Islands recorded a 29.5% share of foreign buyers, the Valencia region 27%, and the Canary Islands 25%. Murcia, Catalonia, and Andalusia also reported strong demand from abroad. By province, Alicante leads with 43% of transactions by foreign buyers, followed by Málaga at 32%.

In Andalusia, foreigners accounted for 13% of home purchases. In Málaga Province, which includes Marbella and much of the Costa del Sol, nearly one in three homes was sold to an international buyer. The average price in the province reached €3,096 per square metre, up 2% on the quarter and well above the national average.

Transaction volumes continue to rise even as prices set new records. Demand from both domestic and international buyers remains strong, particularly in established coastal markets. Supply constraints in these areas continue to put upward pressure on prices.